Chapter 7 Tests
MATCHING
a.
b.
c.
d.
perfect competition
efficiency
start-up costs
commodity
e.
f.
g.
h.
imperfect competition
price and output
technological barrier
barrier to entry
a.
b.
c.
d.
economies of scale
franchise
monopoly
patent
e.
f.
g.
h.
price discrimination
natural monopoly
license
market power
a.
b.
c.
d.
nonprice competition
price war
differentiation
monopolistic competition
e.
f.
g.
h.
collusion
cartel
oligopoly
price fixing
a.
b.
c.
d.
antitrust laws
predatory pricing
merger
competition
e.
f.
g.
h.
price controls
sale
trust
deregulation
MULTIPLE CHOICE
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
Why does a perfectly competitive market require many participants as both buyers and sellers?
What is the relationship between start-up costs and a competitive market?
How does a perfect market influence output?
Why does a perfectly competitive market require many buyers and sellers?
Why is milk is considered a commodity?
How are start-up costs and market competition related?
Why is perfect competition among businesses rare?
A discounted airline fare is a price discrimination that can be offered because
Patents are a form of monopoly that society allows because they
Why does the government give copyrights to artists?
Why is a discounted airline ticket a form of price discrimination?
Why does the government grant patents?
Which businesses have the advantage of economies of scale?
If two shops sell the same merchandise but one offers a higher level of service, the service distinction
is
39. A cartel is able to survive only if
40. The main difference between monopolistic competition and perfect competition is that
42. The U.S. government’s deregulation of the airline industry caused prices to decline in many places
because
43.
44.
45.
46.
47.
48.
49.
52.
54.
55.
Microsoft had used
Before government approves a merger, companies must prove that the merger would
What can the government do to keep monopolies from being formed?
Before approving a merger, what does the government try to predict?
How has deregulation helped consumers in some industries?
What is the intent of both deregulation and antitrust laws?
A real-life example of nearly perfect competition is a
One way that firms in a monopolistic competition engage in nonprice competition is through
What did the federal government accomplish with the Sherman Antitrust Act?
Who can benefit from price discrimination in the travel industry is